‘Enjoy the first mover’s advantage’, Nawaz advises business leaders

ISLAMABAD: Prime Minister Nawaz Sharif on Thursday said Pakistan was set on track of sustainable growth and was ready to do business with the world.

“Pakistan with its sixth largest population in the world, 80 million middle class, blessed with human and natural resources, strategically located, politically stable, offering attractive policies is a destination no global player can miss,” the prime minister said in a meeting with heads of international organizations, here at the PM Office.

The group of corporate leaders that attended the meeting belonged to the United States, Australia, China, United Kingdom, Canada, Italy, France, Spain, Sweden, Singapore, Germany, South Korea and Switzerland.

The prime minister urged upon the foreign businessmen to avail the country’s investment potential and “enjoy the first mover’s advantage”.

Nawaz Sharif apprised the businessmen that Pakistan’s economic conditions were improving continuously with an objective to achieve 5 percent GDP growth rate from the current 3 percent.

He said the government was aimed at achieving sustainable economic growth and mentioned several steps taken in this regard including strengthened tax administration, rationalize untargeted annual subsidies and widened social safety nets.

He said these steps reinforced macroeconomic policies, which resulted in lower budget deficit, increased foreign exchange reserves, and low spending on energy subsidies.

The prime minister said the government was cognizant of the need for a comprehensive and contemporary policy framework that supported macroeconomic stability.

“We are well aware that international investors need stable markets backed by clear and consistent policies. We are committed to maintaining an enabling policy framework to attract foreign direct investment,” he said.

He said the Vision 2025 mapped Pakistan to join the top 25 economies in the world leading to Upper Middle Income country status by 2025.

He said the country’s economy was targeted to grow over 8 percent between 2018 and 2025 while maintaining single digit inflation.

He mentioned that PricewaterhouseCoopers had placed Pakistan at 20 in its projected list of 32 most powerful economies of the world in 2030.

The prime minister said as a result of sustained commitment to reform, key economic indicators had improved since the government was elected in 2013.

Over the past three years, the government brought down the fiscal deficit from 8.6 to 4.2 percent, increased Tax-to-GDP ratio from 9.8 to 12.4 percent and investment to GDP ratio from 14.9 to 15.2 percent, he added.

He mentioned that inflation had been contained which had earlier touched 1.6 percent in October 2015 and had remained well under 3 percent since then.

He said industrial sector showed remarkable performance and registered a growth of 6.8 percent during 2015-16 and was poised to do even better this year and onwards.

Prime Minister Nawaz Sharif said since he came into office in 2013, the economy faced severe energy shortages, inflationary pressures, exchange rate volatility and a precarious security environment.

He said however at present, the consumer market in Pakistan was growing at a very fast pace including automobiles, housing, electronics, telecommunication, hospitality and online-retails sectors.

He said Pakistan was emerging as an expanding market for the US and European products.

He mentioned that the government had devised a comprehensive plan to create investment friendly environment, particularly liberalized investment policies to welcome foreign investments.

“We offer incentives to attract new capital inflows, including tax exemptions, tariff reductions, infrastructure, and investor facilitation services,” he said.

He said the Investment Policy (2013) focused at reducing the cost of doing business in Pakistan, easing business with creation of industrial clusters and Special Economic Zones to attract foreign direct investment, all protected by legislation.

Nawaz Sharif said Pakistan Stock Exchange had been created to lower fragmentation of the market and bring it at par with global markets.

“The bench mark index PSE100, crossed 49,000 in January 2017 and is touching new heights. Recently, 40 percent strategic shares of Pakistan Stock Exchange (PSX) were sold to a Chinese consortium,” he added.

He pointed that this divestment was the first such sale in a bourse in the regional markets and it also marks first venture of Chinese bourse outside China.

The PM also apprised the foreign businessmen of Pakistan’s strategic location on Asia’s premier trade, energy and transport corridor.

“It is also the gateway to the energy rich Central Asian States, the financially liquid Gulf States and the economically advanced Far Eastern economies,” he said.

He said China Pakistan Economic Corridor (CPEC) was a key regional initiative for connectivity and shared prosperity of nations.

He said under CPEC, a portfolio of over US$55 billion had already been implemented while investment of more than US$35 billion in the energy sector was also being implemented.

He said the corridor would substantially shorten transportation distances between Africa and Middle-East to Central and South Asian regions.

The prime minister said international economic agencies were upgrading ratings for the financial and economic stability of Pakistan.

He mentioned that Standard & Poor (S&P) had upgraded its forecast of average annual GDP growth from 4.7 to 5 percent, World Bank forecast a GDP growth of 5.2 percent for 2016-17, S & P also expected Pakistan’s debt to fall below 60 percent of GDP by 2018.

The CEOs from UK included Henry Cookson, MD Henry Cookson Adventures, Britain; Julia Charlotte Chastel De Boinville, Clint Programme Manager Afiniti; George Justin Murray, MD Afiniti; Christopher Malcolm Farmer, EVP Afiniti; Thomas Hampden Inskip, MD Afiniti; Archibald Soames, Sr Manager Afiniti; Julian Lopez Portillo, Client Programme Manager Afiniti and Max Cooper Lintott, Client Program Manager Afiniti.

The business leaders from USA included Muhammad Ziaullah Khan Chishti, CEO the Resource Group and Hassan Afzal, Chief Technology Officer Afiniti.

The business leaders from Italy included Alessandro Benetton, CEO Benetton Autostrade Pvt Equity; Carlo D’ Amelio, CEO Sant’ Anna-Holding Ibl Bancal-Spa; Fabio Corsico, Govt Affairs Director Kolon Group; Marco Alvera, CEO Snam; Cecilia Braggiotti, MD Afiniti and Lucia Baresi, Client Programme Manager Afiniti.

The CEOs from China included Sichen Huang, Afiniti Advisor; Guo Ping, CEO Huawei; Linchun Chin, Youghi Yang, Jin Yi Hugo Ou, Non ED Sinolink Worldwide Holdings, China.

The CEOs from other countries included Raymond Lee, Owner Kolon Group (South Korea); Rob Rankin, Chairman Consolidated Press Holdings and Roy Wyatt Beau, Client Programme Manager Afiniti (Australia); Lai Chang Wen, CEO Ninja Van and Li Huanwu, GM Afiniti and Hua Qianni, Centre Director (East China) (Singapore Consulate); Tanguy Catlin, Senior Partner Mckinsey and Jerome Geo.M.F.de la Croix de Castries, Country Manager Afiniti (France); Alonso Aznar Botella, Silent Programme Manager (Spain); Benedict Constantin Faber, GM Afiniti (Germany); Michel Grorges Portenier, EVP Afiniti (Switzerland); Timothy Gordon Raymond Nixon, GM Afiniti (Canada); Justyna Hanna Kozicki (Sweden) and Ali Raza Siddiqi, Director JS Group and Nadeem A. Elahi, MD and Country Head Pakistan, The Resource Group (Pakistan).